Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

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Friday, February 1, 2013

Network effects, Customer Satisfaction and Recommendation on the Mobile Phone Market

Posted by D. Daniel Sokol

Thomas Cadet (University of Rennes), Sophie Larribeau (University of Rennes) and Thierry Penard (University of Rennes) discuss Network effects, Customer Satisfaction and Recommendation on the Mobile Phone Market.

ABSTRACT: On mobile phone markets that have reached the maturity stage, customer recommendation becomes a critical focus for operators to attract subscribers from rival operators. Referral propensity is also an indicator of subscriber satisfaction and loyalty. The aim of this paper is to examine the factors that influence customer recommendation. Precisely, we want to know whether referral propensity is more driven by supply-side effects (i.e. characteristics of mobile services) or demand-side effects (i.e. network effects). We use data from French subscriber surveys. The main findings are that referrals depend primarily on supply-side effects: operators’ brand image, the price and quality of services, and customer relations. Price, however, is considered to be a less significant factor than the quality of service when it comes to recommending an operator. Also, information on services and the variety of offerings available, as well as network effects, do not seem to influence referral propensity.

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Comments

The survey seem really right.Satisfaction for mobile phone are really high however some of those draft because of side effect and low quality and some are defending to a brand that really has a quality and nice features.Well that was good one.

Posted by: Mika Tallberg | May 20, 2013 10:55:09 PM

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